“Streaming is a very young market, with just about 10 percent penetration globally, so there is a lot of potential still,” said Albrecht. The paid streaming market is expected to grow 16 percent to $28 billion by 2030 in terms of annual revenue, according to Goldman Sachs.
Its strategy is based on a bet that music streaming will continue to grow rapidly to eventually eclipse all other forms of music listening. However it has only 12 million active users - about 9 million paying - compared with Spotify’s 60 million paying subscribers, and brings in just a tenth of the Swedish firm’s $3 billion annual revenue.ĭeezer, controlled by billionaire investor Len Blavatnik, is nonetheless sinking tens of millions of euros into this local music drive. It has a similar “freemium” to market leader Spotify, whereby it attracts users by offering advert-supported free access and charges a monthly fee of about $10 for the full service. “While Spotify is mainly playlist-focused, we are betting on local differentiation, and this has helped us become number one in gospel in Brazil.”īut finding a path to profit represents a formidable task for the loss-making company. “I strongly believe in the localisation of content,” he told Reuters. They include Guatemala, Bolivia, Paraguay, Colombia, Nigeria, Senegal and South Africa. It has 40 editors globally, and is looking to recruit more.ĭeezer Chief Executive Hans-Holger Albrecht said he would target selected markets in Latin America, Asia and Africa where Spotify was not already predominant. The aim is not only to differentiate its catalogue but also to reduce its reliance on the record labels that take the lion’s share of streaming services’ revenue.
It is targeting local listeners while also looking to position itself for a global audience as a “cool”, non-mainstream alternative.Īs part of this strategy, launched this year and called Deezer Next, it is dispatching local teams of “editors” to identify talent in niche genres and create original content, Netflix-style. Instead it is focusing on local music genres in fast-growing, often non-English language markets, areas where it believes it can steal a march.
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